In this video, we are watching the GBPJPY counter-trend scalping trade whose fast retracement leaves the question of whether we should wait longer to close the trade.
Stuck between two pivot levels, the retracement is quick but the second market move lasts for another two and a half hours. During this period the second market move plays out very slowly and the retracement is hesitant. Finally, the pivot level is barely penetrated but the upward momentum wins and the trade would not achive more than 19 pips of profit, so the wait doesn’t pay off.
PLEASE REMEMBER:
The pivot levels have higher authority when it comes to exit strategy of a scalping trade.
If the price-action is hitting a pivot level and the target profit is already achieved, close the trade immediately, otherwise you will have to wait for the second market move when the level could be just touched or fully penetrated.
Waiting for the second move to play out is not worth the risk for a classic scalping trade.
CONCLUSION:
Do not underestimate the importance of pivot levels in your exit strategy.
This is especially true when the market is slow and with low volatility.
***GET COUPON FOR 30%-OFF on you 4X EDGE membership, only at get4xedge.com***
